Stocks continue receiving battering

KARACHI: Bears were on the rampage for most sessions in the outgoing week, knocking down the KSE-100 index by 815 points (1.7 per cent) in the week to 48,156 points.

The concerns over settlements in futures roll-over; the anxious wait over the introduction of a new leverage product and above all the uncertainty over the Panama Papers case verdict kept investors on the sidelines as most observed prudent approach.

The average volume took a hit, down 3.5pc over the earlier week to 249 million shares.

Volume leaders were mainly second and third-tier stocks. Bank of Punjab took the lead with trading in 140.8m shares followed by Azgard Nine 116.7m shares; K-Electric 64.7m shares and Amreli Steel 62.5m shares.

Foreign buying of stocks worth $3.47m in the preceding week did not sustain and the overseas corporates resumed selling in the outgoing week with net outflow of $19.04m. Foreigners reduced their positions in the cement sector by $3.87m; oil and gas $4.9m and banks $2.5m.

The laggards among sectors included commercial banks down 336 points, cement 158 points and fertilisers 130 points. Other major downside contributors were telecom and multi-utilities by 4.1pc and 2.9pc, respectively.

Tobacco sector added 66 points to the index. As the international oil prices staged a rebound, exploration and production sector contributed 51 points. Mari Petroleum managed to gain 85 points on notice pertaining to acquisition of 20pc working interest in Bannu West.

Major news inflow included: SECP approving recommendations modalities of a new leverage product; NML selling 40pc stake of its auto assembling business to the Japanese giant Sojitz Corporation, the KP government issuing 14 licences to companies (including GWLC, BWCL) to set up cement factories in the province.

OUTLOOK: Some market gurus advise caution as the trading is likely to remain range-bound until the dust settles on the Panama Papers case verdict. Others hope that the developments on the introduction of amended leverage product; CPI data for March and the upcoming results season could encourage investors to buy select stocks.